Etihad "likely" to take over Jat Airways in July
United Arab Emirates national carrier Etihad Airways should make an offer to the Serbian government at the end of next week to buy a 49% stake in Jat Airways.
Thursday, 23.05.2013.
16:02
BELGRADE United Arab Emirates national carrier Etihad Airways should make an offer to the Serbian government at the end of next week to buy a 49% stake in Jat Airways. If everything goes according to plan, it is expected that Etihad takes over the Serbian national airline on July 1, a source who is involved in the negotiations, but wished to remain anonymous, has told the Belgrade-based daily Politika. Etihad "likely" to take over Jat Airways in July Etihad's senior officials expect that by June 15, the Serbian government will have decided about the offer they will make. They expect to take over the management of the new company with a 49 percent stake in it, said the source. The source added that a Jat Airways delegation returned yesterday from a visit to Etihad in Abu Dhabi. Since the Serbian government will take over Jat Airways' debts (about EUR 170 million), Etihad plans the new company to become profitable as early as in 2014, and to end 2015 with a profit of about EUR 25 million. One of the most vital considerations relevant to the agreement on the strategic partnership with Etihad is a dispute between Jat Airways, or the government, and Airbus, which started in 1998, when the aircraft producer was paid USD 23.5 million in advance as part of a contract that has never been realized. In addition to the Airbus issue, there is also a problem of surplus employees. In the first phase, the number of employees should be reduced from 1,243 to 800. (Tanjug, file) Politika Tanjug
Etihad "likely" to take over Jat Airways in July
Etihad's senior officials expect that by June 15, the Serbian government will have decided about the offer they will make. They expect to take over the management of the new company with a 49 percent stake in it, said the source.The source added that a Jat Airways delegation returned yesterday from a visit to Etihad in Abu Dhabi.
Since the Serbian government will take over Jat Airways' debts (about EUR 170 million), Etihad plans the new company to become profitable as early as in 2014, and to end 2015 with a profit of about EUR 25 million.
One of the most vital considerations relevant to the agreement on the strategic partnership with Etihad is a dispute between Jat Airways, or the government, and Airbus, which started in 1998, when the aircraft producer was paid USD 23.5 million in advance as part of a contract that has never been realized.
In addition to the Airbus issue, there is also a problem of surplus employees. In the first phase, the number of employees should be reduced from 1,243 to 800.
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